In a landscape of rising real estate prices and interest rates, owning a home can feel like an unattainable goal. But with Loan Factory’s 1% down payment mortgage, the journey becomes more accessible. What exactly is this innovative solution? Who can benefit from it? And what advantages and considerations come with it? Let’s explore the details of this transformative option that paves the way for your homeownership aspirations.
What is a 1% Down Payment Loan?
When it comes to mortgage financing, conventional loans typically demand a minimum 3% down payment, but some government-backed programs may let qualified applicants finance their mortgage with no down payment at all.
On the other hand, 1 percent down payment mortgages offer a special configuration. Despite the label, borrowers are only required to make an upfront cash payment of 1% of the purchase price. After that, the loan provider adds a 2% grant to this first down payment, for a total down payment of 3%.
Rocket Mortgage 1% down payment program
Loan Factory proudly presents a nationwide 1% Down Payment program, in collaboration with Rocket Mortgage, the largest mortgage lender in the US based on Home Mortgage Disclosure Act data. Known as ONE+, this nationwide initiative is designed for borrowers earning 80% or less of the area median income, with a minimum credit score of 620.
With just a 1% down payment, this program aims to make homeownership achievable for individuals who are financially responsible but may have limited savings.
How Does the 1% Down Payment Loan Work?
The 1% Down Payment Loan offers a conventional, 30-year fixed-rate loan option that fulfills the minimum 3% down payment requirement. This program combines your 1% down payment with a 2% grant from the lender, resulting in a total 3% down payment. The grant is forgivable, eliminating the need for repayment, and covers the additional down payment typically required.
Benefits of the 1% Down Payment Program
While navigating down payment requirements can be daunting, innovative programs like the 1 percent Down Payment Program offer a viable solution. This groundbreaking initiative reduces upfront costs and provides numerous advantages. Let's explore the additional benefits the 1% Down Payment Program offers:
- 1% Down Payment Low Down Payment
With just a 1% down payment, prospective homeowners can enter the market with ease. This initiative makes the dream of homeownership achievable for more individuals, offering a pathway to owning a home with minimal upfront costs.
- 1% Down Payment Grant Assistance
Clients can receive up to $7,000 in grants that can be applied to the down payment. This generous grant does not require repayment and carries no prepayment penalty, making homeownership even more accessible and affordable.
- No Repayment or Prepayment Penalties
The 1% Down Payment Program provides a grant that does not require repayment, ensuring you don't have to worry about additional financial burdens. Additionally, there are no penalties for paying off the mortgage early, giving you the flexibility to manage your finances as you see fit.
- Reduced Mortgage Insurance Costs
The 1% Down Payment Program offers reduced mortgage insurance premiums compared to the full coverage amount usually required. This means borrowers can benefit from lower private mortgage insurance (PMI) costs, making the overall loan more affordable and easing the financial burden of homeownership.
Eligibility Requirements for the 1% Down Payment Loan
The 1% Down Payment Loan ONE+ Program offers a more accessible pathway to homeownership by reducing down payment amounts. While eligibility criteria may vary and evolve over time, here are common requirements for qualifying for the ONE+ 1% Down Payment Program:
- Borrowers are typically required to contribute at least 1% of the purchase price from their own funds.
- Making less than 80% of the median income in the area where you’re looking to buy. Rocket Mortgage suggests using Fannie Mae’s lookup tool to find your area’s median income.
- A FICO® score of 620 or higher.
- Purchasing a single-unit primary residence.
Remember that program specifics can vary depending on market conditions and government regulations, so find out what the most recent requirements are and start the application process right away. The 1% Down Payment Program serves as your entryway to a simpler route to house ownership.
Buy a Home Sooner with Loan Factory
By enabling you to purchase a home with just 1% down, Loan Factory's revolutionary 1% Down Payment Program makes homeownership more accessible. Here's how Loan Factory can help you take advantage of this unique program:
1. Expert Assistance
Loan Factory’s experienced loan officers provide personalized guidance throughout the entire home-buying process, ensuring you fully understand the benefits and requirements of the 1% Down Payment Program.
2. Customized Solutions
At Loan Factory, we understand that each homebuyer's financial situation is unique. Our team specializes in crafting personalized solutions that align with your specific homeownership goals. Through our expertise and the 1% Down Payment Program, we ensure you receive tailored guidance to make purchasing a home more accessible and advantageous for you.
3. Competitive Interest Rates
At Loan Factory, we utilize our broad network of lenders to secure competitive interest rates tailored to your mortgage needs. This approach not only lowers your overall loan expenses but also maximizes savings over the course of your homeownership.
4. Forgivable Grants
Our program features a 2% grant which, when paired with your 1% down payment, satisfies the 3% down payment requirement for conventional loans. This grant is forgivable, meaning you are not obligated to repay it. If you find yourself in a better financial position in the future, have an opportunity to refinance to a lower rate, or want to increase your monthly payment, you can.
Start Your Homeownership Journey
Ready to get started? Make the first move toward owning your ideal home by getting in touch with Loan Factory right now to find out more about our 1% Down Payment Program. Our committed loan officers are available to assist you at every stage.
We are available at all times if you have any questions, comments, or concerns. To find out more about whether you qualify for this program or any other program that Loan Factory offers. Check if you qualify: https://www.loanfactory.com/oneplus
